Updated! Sovran Self Storage: Q4, 2009 + Post Call
Sovran Self Storage's results came in ahead of expectations because of lower expenses and reduced occupancy losses. There appears to be little appetite for acquisitions in 2010 and increased expenses.
RBC Capital Markets have given the REIT a sector perform with average risk rating.
| |
Q4, 2009 |
Q4, 2008 |
| Reporting FFO |
$0.28/share |
$0.78/share |
| Operating FFO |
$0.64/share |
|
| NOI growth |
-3.4% |
-1.8% |
| Occupancy |
81.1% |
81.8% |
Sovran Self Storage's 2010 earnings will be pressured by the after effects of de-leveraging, asset recylcing activities and the impact of increased promotional activity. There are limited acquisition opportunities and few catalysts which could drive SSS to outperform. RBC have maintained its rating as sector perform with average risk.
| |
2009A |
2010E |
2011E |
| Reported FFO |
$2.29/share |
$2.36/share |
$2.48/share |
| Operating FFO |
$2.75/share |
$2.36/share |
$2.48/share |
| Occupancy |
81% |
81.5% |
82.6% |
| Price Target |
|
$36.00/share |
|
The Q4, 2009 earnings call can be accessed here:
Sovran Self Storage Disclosure: This article is based on a recent report prepared by analysts for RBC Capital Markets. A member company or one of its affiliates managed or co-managed a public offering of securities for Sovran Self Storage and received compensation from Sovran Self Storage for investment banking activities over the past 12 months. RBC Capital Markets Corp. makes a market in the securities of Sovran Self Storage and may act as principal with regard to sales.